Low-correlation markets can help optimize portfolio returns

Apr 11, 2025, 13:39 PM by Michael Leahy

In a two-asset portfolio, it would be worthwhile to allocate some portion to an asset that offers lower expected returns and higher risk if the two assets are not perfectly correlated, as such diversification can improve the risk-adjusted return.
Commodity office stock is tough to price these days

Mar 25, 2025, 14:10 PM by Matt Mowell

The most recent Cap Rate Survey suggests greater uncertainty around office pricing, particularly for Class B and C assets where fundamentals and financial performance have deteriorated significantly more.
Double-digit office cap rates start to plateau

Mar 20, 2025, 14:22 PM by Matt Mowell

Office investment activity is slowly reviving, with most capital targeting higher quality buildings with stronger occupancy levels and better NOI prospects. Meanwhile, the Class B&C segments continue to struggle.
Capital markets pros believe cap rates have peaked

Mar 10, 2025, 12:15 PM by Matt Mowell

Every six months, CBRE surveys its U.S. capital markets and valuations professionals on whether they expect cap rates to rise or fall, and by how much.
Private Investors Dominating Office Activity Since 2020

Feb 27, 2025, 11:22 AM by Michael Leahy

Accompanying the recent decline in office investment activity has been a change in the profiles of those trading.
Maturity Extensions Obscures Office Debt-Funding Gap

Feb 6, 2025, 14:45 PM by Michael Leahy

Large-scale lender forbearance – including loan extensions – over the past two years has made it difficult to estimate the size of the current debt-funding gap. Nevertheless, this chart provides an estimate of the debt-funding shortfall for office loans originated from 2017 to 2023 and coming due between 2025 and 2028.
A Quadrant Approach to Commercial Real Estate Investing: Part 5, Private Equity

Feb 5, 2025, 16:04 PM by Michael Leahy

This Viewpoint is the fifth installment in a series exploring the relationship between the CRE quadrants of public debt, private debt, private equity and public equity. Specifically, we will examine the historic performance of directly held property and CRE equity funds in relation to the quadrants.
Price-to-earnings analysis reveals potentially attractive real estate opportunities

Jan 30, 2025, 15:14 PM by Michael Leahy

The sharp rise in interest rates has pushed up yields across property sectors and geographies, driving down property values.
Comparing drivers of real asset performance

Dec 3, 2024, 10:30 AM by Matt Mowell

Infrastructure has become a critical focus as asset managers look for new sources of cash flow and governments tap financial partners to help shoulder the cost of public services.
A Quadrant Approach to Commercial Real Estate Investing: Part 4, Public Equity

Nov 6, 2024, 10:29 AM by Michael Leahy

This Viewpoint is the fourth installment in a series exploring the relationship between the CRE quadrants of public debt, private debt, private equity and public equity. Specifically, we will analyze the historic performance of public equity (REITs) in relation to the quadrants.

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